<ARTICLE> 9 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JUNE 30, 1998 10-Q OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> JUN-30-1998 <CASH> 18,591 <INT-BEARING-DEPOSITS> 0 <FED-FUNDS-SOLD> 17,131 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 110,322 <INVESTMENTS-CARRYING> 26,538 <INVESTMENTS-MARKET> 26,886 <LOANS> 446,238 <ALLOWANCE> 8,109 <TOTAL-ASSETS> 637,098 <DEPOSITS> 490,762 <SHORT-TERM> 17,339 <LIABILITIES-OTHER> 4,199 <LONG-TERM> 63,764 <PREFERRED-MANDATORY> 8,482 <PREFERRED> 0 <COMMON> 9,070 <OTHER-SE> 43,482 <TOTAL-LIABILITIES-AND-EQUITY> 637,098 <INTEREST-LOAN> 18,542 <INTEREST-INVEST> 4,031 <INTEREST-OTHER> 543 <INTEREST-TOTAL> 23,116 <INTEREST-DEPOSIT> 10,068 <INTEREST-EXPENSE> 12,408 <INTEREST-INCOME-NET> 10,708 <LOAN-LOSSES> 408 <SECURITIES-GAINS> 0 <EXPENSE-OTHER> 8,063 <INCOME-PRETAX> 5,058 <INCOME-PRE-EXTRAORDINARY> 3,577 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,577 <EPS-PRIMARY> 2.44 <EPS-DILUTED> 2.40 <YIELD-ACTUAL> 0 <LOANS-NON> 0 <LOANS-PAST> 1,065 <LOANS-TROUBLED> 0 <LOANS-PROBLEM> 7,309 <ALLOWANCE-OPEN> 8,010 <CHARGE-OFFS> 309 <RECOVERIES> 0 <ALLOWANCE-CLOSE> 8,109 <ALLOWANCE-DOMESTIC> 8,109 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 0